Apple Unveils iPhone 13 Models: ETFs to Buy
At its annual 'California Streaming' launch event, Apple AAPL unveiled the iPhone 13 series smartphones consisting of the iPhone 13, the iPhone 13 Pro, the iPhone 13 Pro Max, and the iPhone 13 Mini, as well as products like Apple Watches and iPads.
All four iPhones have the same screen sizes and the overall designs are very similar to their predecessors. Notable improvements in this generation include better battery life, overhauled cameras, a cinematic video recording mode, and narrower notches across the lineup. The tech giant says that the Cinematic Mode can recognize when someone is about to enter the frame and automatically changes focus. The four smartphones are powered by the brand new A15 Bionic SoC, and will ship with iOS 15. They also come with new Super Retina XDR displays that Apple says are 28% brighter than the prior generation iPhones.
Out of the four, iPhone 13 mini seems to be the most affordable with a starting price tag of $699. The iPhone 13 will start at $799, while the iPhone 13 Pro and iPhone 13 Pro Max could begin at $999 and $1,099, respectively. iPhone 13 and iPhone 13 mini come with display sizes of 6.1-inch and 5.4-inches, respectively, and their battery will last up to an hour and a half longer than that of the iPhone 12 series. The iPhone 13 Pro and iPhone 13 Pro Max come in four colors, including a slick new blue. Like the iPhone 13, the iPhone Pro and Pro Max get 20% smaller notches to improve the overall screen size. The batteries for these two models will last two and half hours longer than the 12 Pro Max (read: Apple ETFs to Soar on New iPhone 13 Launch Fervor).
Apart from the new iPhone models, the tech giant introduced iPad mini with 8.3-inch display, smaller bezels, and no fingerprint sensor on the front. It is available for $499 and has a USB-C connection rather than a Lightning port that provides better overall connectivity speeds. Apple also added 5G cellular capabilities to the iPad mini, allowing it to stay connected even when it is away from Wi-fi. The new Apple Watch Series 7 comes with a 20% bigger screen and a greater resistance to cracks, as well as more rapid charging capabilities than Series 6. It has a $399 price tag.
Solid Fundamentals
The new iPhone models were welcomed by most analysts. This is especially true as Apple has seen rising earnings estimate revisions of a couple of cents for the fiscal year (ending September 2022) over the past seven days. This represents year-over-year growth of 2.1%. Revenues are expected to grow 4.5%. The Apple stock is cheap, trading at a P/E ratio of 26.77 compared with other FAANG names — Amazon’s AMZN 66.26 times, Netflix’s NFLX 56.78 times, and Alphabet’s GOOGL 27.95 times.
Further, Apple currently sports a Zacks Rank #1 (Strong Buy) and boasts a top-ranked Zacks industry (top 4%), suggesting strong upside for the stock over the coming days (see: all the Technology ETFs here).
ETFs in Focus
The slew of new gadgets will drive Apple’s revenues higher. As such, investors seeking to tap the tech titan’s bullishness could consider the following ETFs. These funds have Apple as their top firm with a double-digit allocation and carry a Zacks Rank #1 or 2 (Buy).
Select Sector SPDR Technology ETF XLK
This most popular technology ETF has $45.3 billion in AUM and charges 12 basis points (bps) in fees per year from its investors. AAPL makes up for roughly 22.1% of the assets.
Vanguard Information Technology ETF VGT
This fund manages about $50.6 billion in its asset base with 19.9% allocation in Apple. It has 0.10% in expense ratio.
MSCI Information Technology Index ETF FTEC
With AUM of $6.4 billion, the product allocates 20.2% in Apple. The ETF has 0.08% in expense ratio (read: Top-Ranked Technology ETFs Looking Good for September).
iShares Dow Jones US Technology ETF IYW
This ETF provides investors exposure to technology stocks with an 18.2% allocation in Apple. The fund has AUM of $9 billion and charges 41 bps in fees and expenses.
Invesco QQQ QQQ
This ETF provides exposure to the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. Apple accounts for 11.2% share. It has AUM of $192.7 billion and charges 20 bps in annual fees.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
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